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Defective IT Return

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Deepak

Financial Analyst

44 Points Posted on 24 May 2021

My client received IT Notice asking for details of Pl account & Balance Sheet.

He is in the business in Insurance & Mediclaim advisor.

He is having bungalow at his native place costing Rs. 5 lac.

My question is, Is he required to show this in his Balance Sheet? If yes under which head?

Thanks in advance.

Replies (8)

Quick Summary

This discussion addresses whether an individual, operating as an insurance and mediclaim advisor, needs to include a personal bungalow valued at Rs. 5 lac on their balance sheet when responding to an IT notice. While some advise including all personal assets and liabilities under 'Fixed Assets', others suggest it's not obligatory for individuals. The correct procedure may depend on the individual's income category and whether they've opted for specific tax schemes like 44AD.

Jay Chichani

77 Points Posted on 24 May 2021

Client is Individual then all assets and Liabilities of it shown in Balance Sheet Fixed Asset Head

sabyasachi mukherjee

Profession

19978 Points Posted on 24 May 2021

If he has shown the included the same in the balance sheet , then let him file returns from certified pl and balance sheet.

Income Tax Wala: (Fin. Expert)

Chartered Accountants

1412 Points Posted on 24 May 2021

Question is not clear

CMA Poornima Madhava

CMA

9106 Points Posted on 24 May 2021

Has the assessee opted for 44AD? For commission income, 44AD cannot be opted.

Sivaramaraju G

Learner

1307 Points Posted on 24 May 2021

If bungalow is in his name then you have to show it under fixed assets side.
remember in balance sheet all assets and liabilities not only business or profession related but all the personal assets and liabilities should include.